Compagnie Chargeurs Invest · EURONEXT:CRI
Compagnie Chargeurs Invest — Chargeurs — Investor Presentation (January 2019)
38 slides from Compagnie Chargeurs Invest's investor presentation, January 2019
Slide 1: Investor Presentation
Investor Presentation Chargeurs reaffirms the effectiveness of its leadership strategy in high value-added niche markets January 2019
Slide 2: Summary (1/2)
Summary (1/2) Chargeurs: since 2015, a long-term growth strategy successfully implemented ◼ From global leadership positions to iconic champions creation: upgrade of the business models ⚫ « Performance, Discipline, Ambition » plan launched right after the change of governance structure in 2015 ⚫ Imp
Slide 3: Summary (2/2)
Summary (2/2) Chargeurs: since 2015, a long-term growth strategy successfully implemented ◼ Successful deployment of the accretive acquisitions and integration strategy ⚫ Champions creation in high value-added niche markets ⚫ Since 2015, €100m in extra revenue and more than €10m in additional recurr
Slide 4: Contents
CONTENTS 1. Since 2015: a methodical strategy of growth to achieve €1bn in revenue by 2021 2. Summary of the first nine months of 2018: Continued enhancement of Chargeurs’ growth profile, profitability and resilience 3. A successful acquisition program: > €100 m in additional revenue from value-gene
Slide 5: Since 2015: a methodical strategy of growth to achieve €1bn in revenue by 2021
Since 2015: 1 a methodical strategy of growth to achieve €1bn in revenue by 2021 Chargeurs – Investor Presentation – 2019 January ―5
Slide 6: The Chargeurs Group at a glance
The Chargeurs Group at a glance Worldwide industrial Leadership positions A robust financial excellence in niche markets profile Serving over 90 countries Protective Films Solid financial performance strengthened again in 2017 Geographic breakdown of 2017 revenue No. 1 worldwide Revenue in temporary
Slide 7: A methodical growth strategy deployed since 2015 aimed at achieving €1bn in revenue by 2021
A methodical growth strategy deployed since 2015 aimed at achieving €1bn in revenue by 2021 A clear vision & Well on the way to achieving solid strategy A success model €1bn in revenue by 2021 Acting as a “designer” of our niche Managerial transformation to drive Upscaling and multiplying sources of
Slide 8: Our value creation drivers
Our value creation drivers Product and services innovation Market segmentation Targeted acquisitions Customer Talent management closeness Industrial & logistics excellence Innovative marketing Digital at the heart of our processes Chargeurs – Investor Presentation – 2019 January ―8
Slide 9: Successful deployment of the Game Changer performance acceleration plan
Successful deployment of the Game Changer performance acceleration plan SMART AND ADVANCED → Plan aimed at accelerating the MANUFACTURING Group's growth and profitability: Improving the performance of our production assets • launched in September 2017 Reducing our production costs Reducing our non-q
Slide 10: Business upscaled in the space of three years – a robust and distinctive performance
Business upscaled in the space of three years – a robust and distinctive performance Revenue up once again and strong increase in margins and cash generated by operations Revenue EBITDA Recurring Operating Profit 533.0 54.6 44.4 +5.3% +11.9% +14.1% +1.5% 506.4 48.8 10.2% 38.9 498.7 8.3% +21.1% +27.1
Slide 11: 2017: an excellent year with further acceleration in performance
2017: an excellent year with further acceleration in performance Results that once again reflect a stronger value creation process Protective Films Fashion Technologies Technical Substrates Luxury Materials 281.0 250.3 227.2 Revenue 157.5 132.0 131.2 99.5 in €m 93.7 95.0 24.6 25.8 20.3 2015 2016 201
Slide 12: Summary of the first nine months of 2018
Summary of the first nine months of 2018: 2 Continued enhancement of Chargeurs’ growth profile, profitability and resilience Chargeurs – Investor Presentation – 2019 January ― 12
Slide 13: Chargeurs continues to enhance its growth profile, profitability and resilience
Chargeurs continues to enhance its growth profile, profitability and resilience Intensified investment drive, with: Sharp improvement in performance despite: • targeted acquisitions with an accretive • • an adverse geopolitical and currency environment a very high basis of comparison & • operating m
Slide 14: Game Changer plan: daily discipline to create long-term value
Game Changer plan: daily discipline to create long-term value Reinvesting qualitatively our excellent financial performance in growth opex and capex 11.5% of EBITDA margin Sales & Marketing EBITDA LFL and excl. growth opex - Bundled “products & services” offerings 11.1% of EBITDA margin - Developmen
Slide 15: Game Changer plan: daily discipline to create long-term value
Game Changer plan: daily discipline to create long-term value Game Changer – our major achievements Sales and Marketing • Development of bundled “products & services” offerings ▪ “Films + Machines” at CPF thanks to the acquisitions of Somerra, Omma and Walco ▪ “Textiles + Lightboxes” at CTS followin
Slide 16: Game Changer plan: daily discipline to create long-term value
Game Changer plan: daily discipline to create long-term value Game Changer – our major achievements Smart & Advanced Manufacturing • Optimization of supplier and customer logistics across all businesses ▪ Re-engineering raw materials and logistics flows ▪ Automating new production phases • Investing
Slide 17: Chargeurs continues to enhance its growth profile, profitability and resilience
Chargeurs continues to enhance its growth profile, profitability and resilience Reinvesting our excellent financial performance in growth opex and capex Excluding growth opex, and on a like-for-like basis, operating margin would have widened by 120 basis points in first-half 2018 compared with H1 2
Slide 18: Nine months ended September 30, 2018: Revenue up 4.6% year on year
Nine months ended September 30, 2018: Revenue up 4.6% year on year Nine months Change Third quarter Change like-for- like-for- In euro millions 2018 2017 reported 2018 2017 reported like * like * Protective Films 217.7 211.0 +3.2% +1.1% 67.7 67.7 +0.0% -4.1% Fashion Technologies 107.8 98.7 +9.2% +5.
Slide 19: A successful acquisition program
A successful acquisition program: > €100m in additional revenue from value - 3 generating acquisitions, purchased at reasonable price Chargeurs – Investor Presentation – 2019 January ― 19
Slide 20: A targeted and long-term acquisition strategy
A targeted and long-term acquisition strategy An acquisition strategy based on a strict and targeted model Distinctive Create global champions in high value-added niche markets vision Focus on accretive businesses Disruption Game-changing bolt-on Vertical acquisitions to move up Acquisitions in new
Slide 21: A successful strategy for value creation
A successful strategy for value creation Since 2015, Chargeurs has carried out targeted acquisitions, creating champions in high value-added niche markets An ongoing and value-creating acquisition strategy Still to come: > Game-changing “bolt-on” acquisitions $80m in revenue > Acquisitions to move u
Slide 22: Case study: Chargeurs - PCC Interlining, a remarkable acquisition
Case study: 4 Chargeurs - PCC Interlining, a remarkable acquisition Chargeurs – Investor Presentation – 2019 January ― 22
Slide 23: Back-to-leadership: a winning strategy from Chargeurs Fashion Technologies since 2015
CHARGEURS Back-to-leadership: a winning strategy from FASHION TECHNOLOGIES Chargeurs Fashion Technologies since 2015 A profound transformation for a return to profitable growth Business Industrial Global footprint development optimization Financial growth Revenue 197.8 Sales optimization 66.7 157.5
Slide 24: The fashion industry: an ongoing revolution
CHARGEURS FASHION TECHNOLOGIES The fashion industry: an ongoing revolution Chargeurs Fashion Technologies customers need to adapt to industry transforming trends New developments in the fast fashion industry Transition to real-time supply chains that require with extensive digitization of the value
Slide 25: Precision Custom Coatings Interlining (PCC): a comprehensive array of services for brands
CHARGEURS Precision Custom Coatings Interlining (PCC): FASHION TECHNOLOGIES a comprehensive array of services for brands $80m in revenue, of which more than 90% generated in Asia 300 employees in a dozen countries, primarily in Asia and the United States ✓ 30 years of business growth ✓ Top 5 leading
Slide 26: CFT + PCC: a global leader with solid fundamentals
CHARGEURS CFT + PCC: a global leader with solid fundamentals at FASHION TECHNOLOGIES the heart of the fashion & luxury industry A strong positioning in the new center of gravity of the fashion industry: Asia EUROPE AMERICAS 29% 14% Served by CFT ASIA Served by PCC 57% Served by both CFT & PCC % reve
Slide 27: A targeted and tactical acquisition for major value creation
CHARGEURS A targeted and tactical acquisition for major value FASHION TECHNOLOGIES creation By sharply improving the Group’s profitability and financial position, the new entity is a perfect fit with Chargeurs’ strict acquisition strategy Solid revenues Very strong transaction terms Accretive margin
Slide 28: Chargeurs and PCC Interlining: applying Chargeurs’ distinctive model
CHARGEURS Chargeurs and PCC Interlining: FASHION TECHNOLOGIES applying Chargeurs’ distinctive model Objective of Chargeurs’ acquisition of PCC Interlining: become the global benchmark in interlinings Differentiation CFT x PCC Game Changer Plan Leadership & efficiency Chargeurs Business Greater marke
Slide 29: Industrial excellence roadmap for long-term value creation
Industrial excellence roadmap for 5 long-term value creation Chargeurs – Investor Presentation – 2019 January ― 29
Slide 30: Iconic Champions
Designing our Iconicity Achieve €1bn in revenue by 2021 with an operating margin topping 8% Iconic Champions New markets Expand market opportunities New Create strategic customer partnerships opportunities Widen our customer & product portfolios Create global champions Differentiation Game Changer p
Slide 31: Creating global champions and iconic champions
Creating global champions and iconic champions Game Changer: an operating performance acceleration plan that advocates daily discipline in the creation of long-term value and that is based on four key areas: Smart & Advanced Sales & Marketing Talent Management Distinctive Innovation Manufacturing
Slide 32: Our ambition: become iconic champions
Our ambition: become iconic champions Global champion Iconic champion - #1 in global market share - #1 brand worldwide - Superior technical and services offering - A go-to, indispensable partner - Best value for money - An unrivaled partner - Superior functional - Superior emotional appeal & experim
Slide 33: Outlook
6 Outlook Chargeurs – Investor Presentation – 2019 January ― 33
Slide 34: Chargeurs is rolling out its roadmap to achieve €1bn in revenue by 2022
Chargeurs is rolling out its roadmap to achieve €1bn in revenue by 2022 Confirmation of guidance for full-year 2018 Revenue growth Higher operating margin Solid cash generation One year after announcing its target: • The goals of its roadmap are fully achieved, • Chargeurs re-affirms its objective o
Slide 35: Chargeurs is continuing to accelerate its performance, with solid operational excellence standards
Chargeurs is continuing to accelerate its performance, with solid operational excellence standards A pro-active and long-term excellence strategy • A committed reference shareholder • Experienced Top Management with an international profile A clear • A clear vision to constantly strengthen our leade
Slide 36: Appendices
Appendices Chargeurs – Investor Presentation – 2019 January ― 36
Slide 37: Glossary
Glossary ◼ Like-for-like growth (based on a comparable scope of consolidation and at constant exchange rates) for year Y compared with year Y-1 is calculated by: ⚫ applying the average exchange rates for year Y-1 to the period concerned (year, half-year, quarter); and ⚫ using the scope of consolidat
Slide 38: 2019 Investor Calendar
2019 Investor Calendar Wednesday, January 30, 2019 (after trading) Financial information: 2018 annual revenue Chargeurs 1 1 2 , av e n u e K l é b e r 7 5 1 1 6 Pa r i s +33 1 47 04 13 40 co mf i n @ c h a rg eu rs .f r w w w. ch a rg e u rs .f r